Delhi [Images] Police on Friday shot dead two persons, suspected to be terrorists involved in the September 13 blasts in the national capital, in a lane near the Khalifullah mosque in South Delhi's Jamia Nagar.

"The special cell got information from the control room and came here to nab the men. From the information we have now, two persons were killed and two of the special cell policemen have sustained bullet injuries," Deputy Commissioner of Police (south) HGS Dhaliwal.

Though the area falls under his jurisdiction, the operation was carried out by the special cell of Delhi Police, which handles high-profile criminal and terrorism cases.

Dhaliwal said the operation was not in a mosque as some rumours suggested.

The police said, they reached the L-18 near Batla House at around 11 am, based on the information they had received, to apprehend the suspects. However, the suspects opened fire and they had to retaliate.

Special Cell Inspector Mohan Chand Sharma took a bullet in his abdomen and Head Constable Balwant was injured, the police said.

The police said of the five suspects, one was injured and arrested while two managed to escape.

The locals said the police had started combing operations as early as 9 am. They also said they were not sure if there was any crossfire. Soon after the firing ended, some residents raised slogans against the establishment and the police.

"Last time also, they came into the area a day before Id and conducted a similar operation. There must be a thorough probe and it should be clearly established if those killed were really terrorists," Salim Mohammed, a resident said.

The police are searching for the two suspects, who managed to escape, in the neighbourhood.

Police said the two terrorists killed in the encounter have been identified as Atiq alias Bashar -- a terrorist wanted in connection with the serial blasts in Delhi and Ahmedabad [Images] -- and and Faqruddin.

It is believed that the police team received the information about the holed-up terrorists from Ahmedabad serial blasts Abu Basher, who was brought to Delhi on Thursday from Ahmedabad for questioning after the last week's serial blasts in Delhi that claimed 21 lives.

Apparently, Basher had identified the four-storied house near a mosque in Jamia Nagar where he along with Delhi serial blasts mastermind Abdus Subhan Qureshi had taken shelter in July.

Meanwhile, 40-year-old Balwant, one of the two policemen injured in the encounter, is now recuperating from bullet injuries at the AIIMS' Trauma Centre. Mohan Chand Sharma is undergoing surgery at the Holy Family Hospital at Okhla Road.

"The condition of Balwant is stable. He has a gunshot injury in the right arm. We are going to operate on him soon," Sushma Sagar, assistant professor, surgery, AIIMS Trauma Centre, told PTI.

"We have also got to see if the gunshot has fractured any of his bone or torn muscles and nerves," she added.

Sagar also confirmed that two persons were brought dead along with the police officials.